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CAIIB BRBL LIVE Class 5 By Ashish Sir
What is the primary objective of the Banking Regulation Act, 1949?
The Banking Regulation Act, 1949 aims to regulate and supervise the business of banking companies in India to ensure the stability, soundness, and proper functioning of the banking system.
What is the minimum net worth requirement for a banking company to open a branch in India?
RBI prescribes net worth via licensing norms under BR Act.
Under the Banking Regulation Act, what is the minimum paid-up capital requirement for a new bank to commence banking business?
A banking company requires a minimum paid-up capital and reserves as prescribed by the RBI; the Act empowers RBI to stipulate capital adequacy norms to ensure banks are financially sound before commencing operations.
What does Section 17 of the Banking Regulation Act mandate regarding reserve funds?
Banks must transfer 20% of net profit to reserve fund annually.
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